Fletcher Building slashes earnings outlook

Fletcher Building chief executive Jonathan Ling Photo / Natalie Slade

Fletcher Building, New Zealand's largest listed businss, this morning downgraded its annual earnings outlook, after the Christchurch earthquake.

Philip King, general manager investor relations, released a note to the NZX saying the impact of the quake could lower earnings for the June 30 year by $14 million to $24 million.

General business conditions in Christchurch would remain at very low levels for some time, he said.

In the longer term, Fletcher stands to gain from the huge rebuild.

Fletcher has made an allowance of $5 million to assist with Christchurch's recovery programme.

Analysts expect Fletcher to make $313 million to $396 million this year.

Also this morning, the Commerce Commission cleared Interpipe Holdings, trading as Waters & Farr, to buy Fletcher Concrete and Infrastructure's vertical drycast technology concrete pipe plant in Hamilton.